What's happening inside my key account's business that should change our forecast?

What's happening inside my key account's business that should change our forecast?

The customer's business moves your number. Their investments, cost cuts, budget timing and market can raise or lower your forecast long before your pipeline shows it. A key account manager (KAM) who reads those signals can adjust the number in time.

Five questions to see if your team can do this job today:

1. Has your KAM reviewed the customer's latest financials for areas of investment and cost cutting?
2. Has each opportunity's timeline, budget and decision process been confirmed with the customer?
3. Does the forecast account for market and seasonal trends in the customer's industry?
4. Does your team know which of the customer's initiatives could raise or lower spend next quarter?
5. Does your team update the forecast when something changes inside the customer's business?

Two or more no's, and the customer's next move may surprise your forecast.

Depending on your incentive structure, your key account forecast can make or break a year. In my case, the forecast was tied to 75% of my total compensation, so finding the answers I needed to build an accurate forecast was not optional. The current pipeline was useful for about 20% to 50% of that number. The rest was what was going to happen in the customer's business, whether we would take advantage of expansion opportunities, and whether we would protect the business we had.

We built a repeatable process for how this information was collected and validated. That process turned into one of our best business development opportunities: time to strengthen the relationship, moments to learn more about our customers' challenges, and chances to expand through new deals that help the client accomplish their goals.

Your forecasting process in key accounts should help you accurately predict future results. How well do your forecasts line up with what's actually happening in your customer's business?

Our system, the Vitality Index, shows your key account teams where they stand today, the work it takes to level up, and how to do it, until they reach a vital partnership that lasts.

What changed inside your largest customer's business this quarter that your forecast doesn't show yet?

We built a free, 4-minute Key Account Risk Assessment. It gives you a risk score for your key accounts across team alignment, account planning, account transitions, and visibility. Link in the comments.